Customer returns and allowances for a shoe department came to $7,000. Gross sales in the department...

Customer returns and allowances for a shoe department came to $7,000. Gross sales in the department were $75,000. A) What percentage of merchandise sold was returned? B) What is the department’s Net Sales?

Expert Solution

Given that :

Customer returns and allowances = $7,000

Gross sales = $75,000

A) percentage of merchandise sold was returned :

= Customer returns and allowances / Gross sales

= 7,000/75,000

= 9.33%

percentage of merchandise sold was returned = 9.33%

B) departments net sales :

= gross sales – returns and allowances

= $75,000-$7,000

= $68,000

Net sales = $68,000

ekkarill92 answered 2 years ago

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